Conditions of Contract for Construction (Multilateral Development Bank Harmonised Harmonised Ed. Version 2: March 2006). For Building and Engineering Works designed by the Employer. General Conditions; Particular Conditions; Forms of Tender, etc. Electronic version in encrypted PDF.

Conditions of Contract for Construction, which are recommended for building and engineering works designed by the Employer or by his representative, the Engineer. Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with a design provided by the Employer. However, the works may include some elements of Contractor-designed civil, mechanical, electrical and/or construction works.

FIDIC wishes to record its appreciation of the time and effort devoted by all the above.

The ultimate decision on the form and content of the document rests with FIDIC.

INTRODUCTION

The Multilateral Development Banks (MDBs) have for a number of years adopted the FIDIC Conditions of Contract for Construction as part of the Standard Bidding Documents which the MDBs require their borrowers or aid recipients to follow. In using the FIDIC Conditions it has been the regular practice of the MDBs to introduce additional Clauses in the Conditions of Particular Application (or “Particular Conditions”) in order to amend provisions contained in the FIDIC General Conditions. These additional clauses in many cases have standard wording which has to be repeated whenever procurement documents are being prepared for a new project.

Furthermore, the provisions in bid documents, including the additional clauses contained in the Particular Conditions, varied between the MDBs, and this created inefficiencies and uncertainties amongst the users of the documents, and increased the possibilities for disputes. The problem was recognised by the Heads of Procurement (HOPs) of the MDBs as significant, as were the benefits of standardisation. In response, the HOPs resolved to harmonise their bid documents on an international basis, by making use of the FIDIC General Conditions.

For this purpose, the HOPs further resolved that there should be a modified form of the FIDIC Conditions of Contract for Construction, 1st Edition 1999, in which the General Conditions would contain the standard wording which previously has been incorporated by MDBs in the Particular Conditions. FIDIC also recognised the major benefits to the users of the contracts of harmonisation and the inclusion in the General Conditions of the main common changes required by Particular Conditions in MDB contracts.

Accordingly, the Federation was pleased to work with the HOPs to produce this MDB Harmonised Edition of the 1999 conditions for MDB contracts. It is believed that the modified, or harmonised document, will simplify use of the FIDIC Conditions of Contract not only for the MDBs and their borrowers, but also for others involved with project procurement, such as consulting engineers, contractors and contract lawyers. Use of the harmonised conditions should significantly reduce the number of additions and amendments to be included in the Particular Conditions. Nevertheless, most projects will have special requirements which will necessitate some specific changes. This harmonised document therefore contains provision for Particular Conditions, as has become the practice in other FIDIC documents.

This MDB Harmonised Edition also includes sample forms for Contract Data, Securities, Bonds, Guarantees and Dispute Board agreements. In general, this harmonised document follows earlier FIDIC risk sharing principles for the type of contract for which they were prepared. In most cases, the amendments which have been made to produce the MDB Harmonised Edition of the FIDIC General Conditions for Construction are those arising from the requirements of the MDBs, except for some minor changes of an editorial nature. However, in the case of the dispute provisions contained in Clauses 20.2 to 20.8 and in the associated Appendix, the opportunity has been taken to make other amendments which FIDIC considers an improvement on earlier wording in the of the Construction Contract, 1st Edition 1999.

A draft of this MDB Harmonised Edition was circulated for comment to interested parties, prior to its finalization. All of the comments received were considered by FIDIC and some have been incorporated. Other comments will be reviewed again when in due course FIDIC produces a second edition of its Construction Contract.

The insurance provisions given in Clause 18 of the document remain unchanged from the 1st Edition 1999, although some commentators have suggested an alternative approach to dealing with this specialised topic. In particular, Employers may wish to consider arranging for a dedicated single policy for the project which would cover all necessary insurances. The advantage of such an approach is that it would avoid gaps or other misunderstandings in the insurances provided, including possible duplication of cover. If an Employer decides to arrange a single insurance policy, then a copy of that policy should be made available to tenderers during the tender period. FIDIC recommends that Employers should obtain, at an early stage of project procurement, expert advice on insurance matters.

The MDBs listed in the section "Participating Banks" have participated in the preparation of the MDB Harmonised Edition. It is understood that all of them will adopt this edition of the FIDIC document in their Standard Bidding Documents.

PARTICIPATING BANKS

The Participating Banks listed below have participated in the preparation of the Multilateral Development Bank (MDB) Harmonised Edition of the FIDIC Conditions of Contract for Construction. It is understood that all of them will adopt this edition of the FIDIC document in their Standard Bidding Documents. The MDB Harmonised Edition is for use on projects financed in whole or in part by a Participating Bank.

African Development Bank

Asian Development Bank

Black Sea Trade and Development Bank

Council of Europe Development Bank

Caribbean Development Bank

European Bank for Reconstruction and Development

Inter-American Development Bank

International Bank for Reconstruction and Development (The World Bank)

COPYRIGHT

Copyright Under the terms of the licence agreement with a Participating Bank, the sole Copyright owner of the Conditions of Contract for Construction which includes the MDB Harmonised General Conditions of Contract is FIDIC.

8.1 Commencement of Works 8.2 Time for Completion 8.3 Programme 8.4 Extension of Time for Completion 8.5 Delays Caused by Authorities 8.6 Rate of Progress 8.7 Delay Damages 8.8 Suspension of Work 8.9 Consequences of Suspension 8.10 Payment for Plant and Materials in Event of Suspension 8.11 Prolonged Suspension 8.12 Resumption of Work